, 1887-09-30
ROUGH ON GOULD.
Norwood and Reif Before the
Pacific Commission.
An Unwilling Witness Speaks
His Mind.
And Would Bet on Gould
Every Time.
Before the Pacific Commission.

NEW YORK, Sept. 29.-Ex-Senator
Norwood, of Georgia, appeared before
the Pacinc railroad commission this morn
ing to explain the vouchers for considera.
BILE mounts in the possession of the Cen
trail Pacific railroad, which showed him to
have received these amounts for services.
The senator said he never did ANYTHING
for the Central Pacific railway, but was
engaged as counsel for the Southern Pa
rifle. In 1878 he had left the senate and
entered upon his law practice in Savan-
nah, and received word that his services
were wanted in Washington. He went
on there and met Huntington, with whom
he made a CO 1tract as counsel for the
Southern Pacific railroad to advance its
interests in the South against Governor
SCOTS Texas Pacific railroad. Witness
produced a contract drawn by Hunting
ton, which provided for the payment to
Norwood Tor his services at $40, 500 year
ly, with allowances for expenses. He
always made his bills against the South
ern Pacific railroad, and drew receipts in
favor Of the Central Pacific. Norwood
said he knew of nc act of wrong on the
part of the Southern Pacific or its Off
GERS, unless it was the act of placing these
charges on the books of the Central Pa
cifc.
At this point Attorney Cohen said he
vas glad that Norwood had made this
criticism, for he had no doubt that when
the charges we're made there was a con-
tract by which the Central Pacific was re-
ceiving the earnings of the Southern Pa
ciic and paying its expenses
Col. John q. Reiff, of Woerisheffer &
Co., bankers and brokers of this city, was
next called to the stand. He knew moth
ing about the matters OF the Central Pa
ciic railroad, but did know considerable
concerning the Kansas Pacific and Union
Pacific railroads, and was fiscal agent for
the former company from 1866 to 1874.
Reif said he would like it understood
thai he was present as an unwilling wit
ness, as he had already suffered consider
able from the money power that controls
the roads concerning which he was called
to testify.
Being asked what power he referred
to he said, Il suppose Mr.. Gould; he is
the boss"
Witness first attacked the consolidation
of the Kansas Pacific with the Union
Pacific. He said the latter road had not
lived up to the act of 1864 with reference
to full paid stocks, and acquired great
power by issuing paper which cost them
nothing. This enormous power they had
used to bankrupt the Kansas Pacific and
injure witness and his friends. Since
Gould had got into the company the
Gould methods have controlled, aud these
methods are doing just exactly as they
wanted and relying on the subserviency of
public affairs and the courts, under the
plea of vested rights" 1t is too late.
The Union Pacific has during this entire
investigation, been crying out that they
were cramped by the action of congress,
but they have not been so greatly
crampeI, for they have practically built
up their branch lines since the passage of
the Thurman act.
Witness said the company could have
paid a part of the governments claim,
but it never proposed a settlement until
compulsion was resorred to and then it
fought. The Union Pacific, Reif said,
appeared to be very fortunate in that it
possessed u that allowed it to do
what it pleased and still escape the admin
i~strators of the law. Concerning the pro-
posed adjustment of the governments
claim, ReIff said: II would not unduly
press these aided companies to the pay
ment of these debts. | would have exist
ing laws administered equitably compell-
ing the roads to do exactly what they are
able to do and no more.
Judge Dillon expressed a desire to cross
xamlne witness, and proceeded until he
reached the matter of a suit brought
against the Union Pacific railroad to test
the right of the road to construct branches.
Col. Reitf said he had nothing to do
with the suit, and then appealed to the
commission. Il am here as an I'm willing
witness and am willing to submit to any
reasonable cross examination, but | am
not on trial and | don't know what right
Judge Dillon has here, if he has any.
My relations with the people whom Judge
Dillon represents has been disagreeable
and don't want them made more So
Witness her submitted to a little fur
Their cross examination and started to give
a little testimony. Witness said.
SIS it not very strange that they who
have been the greatest foes, especially if
they have been able foes of the Union
Pacific in congress-, afterward appear as
their champions ? The authors of the
Thompson bill defeated for re election by
these people, appeared in their emrloy
at the next session of congress. Who is
the company's biggest friend in the SEN
ate of the United States today2 Geo. +.
Hoar, who signed the Credit Mobilier re-
port. Who are their Washington at
torneys? Shellabarger and Wilson, who
signed the same report. IF | had my
way | would have congress pass a simple
bill declaring when the United States has
a money interest in any corporation that it
shall have all the rights possessed by
stock holders. This, | .hink, would set
tie the entire matter"
Regarding the government directors of
the Union Pacific, ReIff said:
IF there were thirteen members of a
board of directors at a meeting and Gould
were one of them | would bet on Gould
getting just what he wanted at such meet
ing every time"
Judge Dillon desisted from further ex-
animation. and Il recess was taken.
After recess, Mr.. Reiff was recalled.
He failed to remember having paid any
sums out of the Central Pacific funds on
behalf of the Southern Pacific. Louis @.
Chittenden, formerly counsel for the Cen
trail Pacific, never attempted td@Secure
legislative votes by bribery.
Legal blanks at the Leader Office.